CTXS closes below its opening price unable to hold early session gains
Citrix Systems Inc. (CTXS) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
CTXS ended Wednesday at 135.13 losing $0.79 (-0.58%), but still notably outperforming the Nasdaq 100 (-1.67%). Trading $1.58 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Tuesday's low at 135.23, the share confirmed its breakout through the prior session low after trading up to $0.27 below it intraday.
Daily Candlestick Chart (CTXS as at Sep 16, 2020):
Wednesday's trading range has been $3.67 (2.68%), that's slightly below the last trading month's daily average range of $4.24. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CTXS.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
Unable to break through the key technical resistance level at 137.80 (R1), Citrix Systems closed below it after spiking up to 138.63 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move lower than 135.23 in the previous session, the stock found buyers again around the same price level today at 134.96. The last time this happened on September 2nd, CTXS actually lost -4.87% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 131.15 where further sell stops could get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Bottom Pattern" stand out. Its common bullish interpretation has been confirmed for Citrix Systems. Out of 49 times, CTXS closed higher 65.31% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 59.18% with an average market move of 0.73%.